As the increase in household loans from the secondary financial sector reached 2 trillion won last month, financial authorities are discussing a plan to require the 'annual household loan target'?previously only submitted by banks?from the secondary financial sector as well.
According to financial authorities and the financial sector on the 3rd, the Financial Services Commission plans to hold a household debt inspection meeting around the 11th to present directions for strengthening management related to the rapid increase in household loans in the secondary financial sector.
Due to the impact of loan regulations and other factors, apartment transactions have slowed down, causing listings to continue to accumulate. On the 24th, sales and jeonse (long-term lease) flyers were posted at a real estate office in Gangnam, Seoul. Photo by Kang Jin-hyung
It is reported that household loans in the secondary financial sector alone increased by about 2 trillion won in the past month. This scale of increase is the largest in about three years.
As banks tightened household loans, mainly mortgage loans (Judaemae), loan demand appears to have rapidly shifted to the secondary financial sector. Saemaeul Geumgo alone showed an increase in household loans of around 1 trillion won.
First, at the meeting on the 11th, financial authorities will discuss a plan to receive 'annual household loan increase targets' from the secondary financial sector, similar to the banking sector.
A financial authority official said, "Banks receive loan targets as part of their annual business plans, so they can predict and manage the increase, but currently, the secondary financial sector does not have such a system," adding, "We intend to apply (the target-setting system) to the secondary financial sector as well."
If the household loan surge in the secondary financial sector intensifies further, more direct management measures such as strengthening the Debt Service Ratio (DSR) regulations are expected to be introduced.
Measures under consideration include raising the Stage 2 stress DSR interest rate by 1.2 percentage points for mortgage loans in the secondary financial sector in the metropolitan area.
Earlier, on the 1st, the Financial Supervisory Service urgently convened officials from mutual finance sectors, including Saemaeul Geumgo, to order strengthening of household loan management.
They also emphasized requests to refrain from aggressive online and offline marketing targeting large-scale residential complexes or pre-sale complexes.
In this regard, mutual finance sectors such as Saemaeul Geumgo, Nonghyup Central Association, and Shinhyup Central Association will implement strengthened household loan management measures targeting multi-homeowners early this month.
They also decided to strengthen pre-screening of group loans at the central association level.
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